Information Disclosure Based on TCFD Recommendations
Information Disclosure Based on TCFD Recommendations
We believe that climate change is one of the most important themes for our company, whose mission is to create new value and “to promote health and happiness through the enjoyment of nature and the world around us.” We analyze the risks and opportunities that climate change will bring to our business, evaluate the impact that climate change will have on our
business, integrate the response to risks and plans to take advantages of opportunities in our management strategy. We believe that this is important for the sustainable growth and enhancement of the corporate value of our company, as well as for contributing to the sustainability of society, and will disclose the progress appropriately.
Governance
The ESG Committee (established in May 2022) monitors CO2 emissions and activities to reduce them, deliberates policies and measures to deal with climate change-related risks and opportunities, and reports to the Board of Directors. The Board of Directors supervises and directs the appropriate promotion of measures to deal with climate change-related risks and
opportunities based on the content of the report.
*In the fiscal year ended December 2023, ESG Committee meetings were held three times and the outcomes were reported to the Board of Directors three times.
*In the fiscal year ended December 2023, ESG Committee meetings were held three times and the outcomes were reported to the Board of Directors three times.
Strategy
To confirm the impact across the Group, in 2022 we qualitatively assessed climate-related risks and opportunities that could have a financial impact over the time frame until 2030. In 2023, we conducted a scenario analysis for the year 2030 using climate change scenarios (1.5- and 4-degree scenarios) from the International Energy Agency (IEA) and the
Intergovernmental Panel on Climate Change (IPCC). In the analysis of each scenario, we also quantitatively verified and assessed the impact of the qualitatively identified climate-related risks and opportunities on the business.
Of these, climate-related risks and opportunities that have a significant impact on the business are as shown in the table below.
Of these, climate-related risks and opportunities that have a significant impact on the business are as shown in the table below.
| Risks and opportunities | Changes in the external environment | Impact on the business | |
|---|---|---|---|
| Transition risks | Policy and regulations | Introduction of carbon tax, increase in carbon tax rate | Increase in costs |
| Reputation | Increase in the number of stakeholders who regard climate change response as one of the components of brand value | Decrease in sales revenue | |
| Physical risks | Acute | Intensification of typhoons and floods | Decrease in sales revenue Increase in investment costs |
| Opportunity | Products and services | Expansion of the bicycle market as a mode of low-carbon mobility | Increase in sales revenue |
Risk management
At our company, the ESG Committee (established in May 2022) discusses the risks of climate change issues and reports to the Board of Directors. The Board of Directors receives the content of discussions and conducts supervision by reviewing them and giving instructions, as necessary.
Indicators
We are currently identifying key indicators related to climate-related risks and opportunities. For reference, Scope 1 and Scope 2 emissions are as shown in the table below.
Factors contributing to the year-on-year decrease in emissions in FY2023 include a decrease in production compared to FY2022, new purchases of Renewable Energy Certificates by some overseas subsidiaries, and energy conservation effects.
Factors contributing to the year-on-year decrease in emissions in FY2023 include a decrease in production compared to FY2022, new purchases of Renewable Energy Certificates by some overseas subsidiaries, and energy conservation effects.
Scope 1 and Scope 2 emissions
(all production bases in Japan and overseas)
(Unit: t-CO2)
Scope 1
Scope 2